The crude oil market held above 16-year trend line support
at today’s 43.35 early morning low.
This trend line on the weekly chart has now held on three
separate occasions during 2015. The first was in January as the market
bottomed out at a 43.58 spot contract low. The second hold above trend
line support was in March when the market bottomed out at a new 6-year low at
42.03.
Today for a third time this year, trend line support was
reached and held. It will take several days of trade before a
market low can be confirmed.
If the crude oil market continues to hold above trend line
support, a long term low could be set in both the crude oil and heating oil
markets.
If trend line support doesn’t hold and the spot September 15
crude oil contract trades under the mid-March low at 42.03, the trend will
remain down and the December 2008 low at 32.40 will then become the next longer
term support.
No comments:
Post a Comment